CHIRANJIV LAL Vs. TROPICAL INSURANCE CO LTD

JUDGEMENT

(1.) THIS is a plaintiffs' appeal against an order passed by Mr. Tara Chand Gupta, Subordinate Judge, Delhi, staying the suit under Section 34 of the Indian Arbitration. Act.

(2.) THE plaintiffs took out two policies with the Tropical Insurance Company Limited, one on the 30th of April, 1947, for Rs. 80,000/- and the other on the 17th of April, 1947, for Rs. 20,000/-. THEy included risk against damage due to fire or explosion caused by persons taking part in riots or civil commotion. Two of the terms of these policies have been referred to in the course of arguments, THEy are Clauses 10 and 18:

(3.) ON the 29th September 1947, the plaintiffs wrote back to the defendant company that the two letters sent by them were contradictory, that no registered letter had been received and that the policies could not be terminated at least not without proper notice, and informed them that they will have recourse to a Court of law if their claim was not settled. ON the same day by another letter the plaintiffs informed the Company that the whole factory had been burnt down and looted and that there was a "total loss" and asked them to arrange for an early settlement of their claim. Nothing has been shown on this file that the Company ever challenged the amount of the loss before the suit was brought.